Mastercard Profit, Revenue Top Expectations -- Update
October 28 2016 - 11:06AM
Dow Jones News
By Robin Sidel and Joshua Jamerson
Mastercard Inc. said third-quarter profit increased 21% due to
strong revenue growth and a jump in processed transactions,
propelling the stock by nearly 3% in morning trading.
The results easily beat Wall Street's expectations.
Purchase, N.Y.-based Mastercard said transactions rose 18%
during the quarter as cross-border volumes climbed 12%. Those
factors were partly offset by higher rebates and incentives to
customers.
Chief Executive Ajay Banga told analysts the global economy
remains mixed, although the company has seen double-digit volume
and transaction growth in most of its markets. "We are executing
consistently," Mr. Banga said on a conference call.
Like its main rival Visa Inc., Mastercard processes credit-card
and debit-card transactions, charging fees to financial
institutions that issue its cards. Visa on Monday said earnings
rose on growth in payments volume and processed transactions.
Mastercard reported a profit of $1.18 billion, or $1.08 a share,
up from $977 million, or 86 cents, in the year-ago quarter.
Revenue rose 14% to $2.88 billion.
Analysts polled by Thomson Reuters expected 98 cents in
per-share profit on $2.75 billion in sales.
The company noted that fourth-quarter revenue growth will slow
somewhat, partly due to an anticipated increase in rebates and
incentives.
Mastercard is expanding from traditional physical credit and
debit cards as its customers move to digital formats. Among other
things, it is expanding its digital payment platform, Masterpass,
to let shoppers use the service on their mobile phones at store
checkout terminals and for online transactions.
Write to Robin Sidel at robin.sidel@wsj.com and Joshua Jamerson
at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 28, 2016 10:51 ET (14:51 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From May 2024 to Jun 2024
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Jun 2023 to Jun 2024